Why do big companies form their own credit union? A number of reasons are possible. First, most credit unions are smaller than banks and have smaller budgets. They may not have the same technological capabilities and products as larger banks. Second, they have fewer locations. Most credit unions only offer basic online banking features like account balances and recent activity. Traditional banks are much more diverse and have a much larger branch network.
Another factor is that a credit union is a nonprofit organization. While large banks are for-profit, credit unions are nonprofit organizations, which means that their members aren’t shareholders. Because they don’t have shareholders, these nonprofit organizations don’t have to worry about profiting. A credit union is run by members for members. Its mission is to serve the community, and provide financial services that benefit people.
As a result, credit unions are member-owned, which means that their profits stay in the community. Because they’re member-owned, they know what their members want and can grow with their business. Plus, credit unions are often more closely aligned with community goals. They’re more likely to offer competitive interest rates than larger banks. They also benefit from low processing fees and lower interest rates.
Another benefit to credit unions is that their members get exceptional customer service. They’re not just account numbers – they’re neighbors. In addition to lending products tailored to their needs, credit unions often offer a range of financial education resources. Personalized service means that members are treated like people, rather than just numbers. And credit unions are tax-exempt, which means that the profits go back into helping their members.